Home values are still high despite the recent decline of home sales prices. Compare January 2008 with the same month five and 10 years ago and you'll see home values have increased significantly. Why look back this far? Sales price information from several years back can be more valuable than month-to-month or year-to-year trends.
According to research by the California Association of REALTORS®, on average a homeowner holds their property for six years before selling it. Therefore, if your client purchased their home five or more years ago, there's a good chance it's value has appreciated. For some reason, the media has ignored price trends beyond what was happening last year. This oversight results in a misconception about the true value of real estate.
The January 2008 median sales price for detached single-family homes in the Central County communities of San Leandro, San Lorenzo, Castro Valley and Hayward was $456,457 which is a 21 percent increase since 2003 and 165 percent increase since 1998.
Similar trends were found in the Tri-Cities area including Union City, Newark and Fremont. The January 2008 median price of $530,000 was an increase of 17 percent since 2003 and 135 percent since 1998.
The most dramatic increases were in the Tri-Valley region of Dublin, Pleasanton and Livermore. The 2008 median price of $715,000 represents a 38 percent increase from five years ago and a 213 percent rise over the last 10 years.
Please refer to the following table for community-specific information.
Median Sales Prices for Single Family Homes
Jan. 1998 Jan. 2003 Jan. 2008
Central County $172,500 $377,250 $456,475
Castro Valley $250,000 $437,000 $562,500
Hayward $171,000 $367,000 $435,500
San Leandro $170,500 $387,500 $477,450
San Lorenzo $174,000 $365,000 $390,000
Tri-Cities $225,500 $452,475 $530,000
Fremont $260,000 $452,475 $740,000
Newark $225,500 $417,500 $489,000
Union City $211,000 $461,000 $530,000
Tri-Valley $228,500 $516,500 $715,000
Dublin $228,500 $516,500 $715,000
Livermore $217,950 $447,500 $510,000
Pleasanton $342,975 $548,000 $855,000
This information has been provided by the Bay East Association of Realtors.